Nerves remain frazzled into the weekend amid worries over a full-scale banking crisis. In spite of the actions by central banks and other regulators to try to ringfence the problems that helped take down SVB, Signature Bank, and that weigh on First Republic and Credit Suisse, investor confidence has been severely shaken, leaving the very fragile conditions and everyone is wondering; Is there another banking shoe to drop? The pop in interest rates that exposed problems is not going away. A flight to safety is picking up again with yields falling and that is likely to be today’s trade ahead of the weekend. The 2-year Treasury is 11 bps lower at 4.048% versus a 4.24% high overnight. The 10-year is down 13 bps to 3.45%. Yields on European bonds are down sharply too with the German 10-year Bund 13 bps richer at 2.15%. Japanese Government Bonds (JGBs) closed 12 bps lower at 0.0143%

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.